Financial crises due to weak financial sectors can often be avoided if international lenders respond appropriately.

Question

Quizplus · Accepted Answer

When international lenders respond appropriately by providing financial support and guidance, weak financial sectors can be strengthened and financial crises can be prevented. This was seen in the case of the Asian financial crisis of 1997, where international institutions such as the International Monetary Fund played a crucial role in supporting affected countries and preventing the crisis from spreading.

Financial Crises Due to Weak Financial Sectors Can Often Be